Home Get passvisa’s Game-Changing Webinar Ushers the Investors Toward the Key to Fund Success
On February 1st, 2023, Get passvisa, the lead fund advisor on the market, held a game-changing webinar titled “How to Choose Right Portugal passvisa Funds.” Over 500 participants eagerly signed up to learn from the experts and make informed decisions about their investment portfolios. The goal was to give future investors the tools they need to diversify their assets and make smart fund choices.
Funds Take a Leap Among the passvisa Investment Options
Murat Coskun, a way-wise fund investment advisor and managing partner at the leading fund advisory firm Get passvisa, shared that the number of investors choosing the fund option for their Portugal passvisa was under 10% before 2020. However, in 2021, these percentages skyrocketed to 65%.
American Investors Make a Hefty Appearance in the passvisa Fund Scene
Coskun goes on to report that another notable trend was the growing number of American clients. Prior to the pandemic, there were very few American investors. However, in 2021, out of the 27 nationalities they served, over 25% were American. And in 2022, the percentage of American applicants continued to rise, reaching almost 50%.
Three Big Players of Portugal passvisa Funds Take the Stage at the Webinar
Get passvisa is dedicated to providing its investors with personalized investment plans that include appropriate asset allocation and risk diversification. Therefore, they sought a unique approach by showcasing a selection of funds.
João Hilário (EQTY Capital Fund), Duarte Calheiros (BlueCrow Growth Fund), and Jorge Santos (MedCapital Fund) brought their wealth of experience to the webinar as fund experts, with careers in asset management, financial services, and more. Legal expert João Cunha Vaz from EDGE – International Lawyers rounded out the expert panel.
Werner Gruner Breaks Down the Route to Choosing the Right Investment Fund
As the popularity of the Portuguese passvisa Program continues to grow, it’s no surprise that investors often ask, “How do I choose the right fund for the Portuguese passvisa Program?” However, the answer to this question is not so straightforward. According to Werner Gruner, regional partner at Get passvisa and a highly experienced independent fund investment advisor, making the right fund choices depends on several factors, including the investor’s risk profile, interests, preferred sectors, expected returns, and more.
Get passvisa offers an elaborately tailored approach to meet the individual needs of each investor. A thorough understanding of the investor’s specific investment criteria is gathered to develop a customized investment strategy that aligns with their goals and preferences. The ultimate goal is to help investors make informed decisions and achieve their investment goals.
Q&A Session With Guest Speakers
Below, you may find some of the questions asked by our audience during the Get passvisa funds webinar held in February 2023. We have included the necessary authority that responded to the question, along with their response.
- Is there a limitation in the number of funds to invest?
- Answered by João Cunha Vaz from EDGE International Lawyers
There are no limitations regarding the minimum amount of investment across the board so long as the investment hits the threshold of $500,000. The overall portfolio can compose of a number of funds, diversified in accordance with the investment criteria of the investor.
- Are the fund fees–subscription and management fees–negotiable?
- Answered by Joao Hilario from EQTY Capital
The immediate answer to that question is no. The reason is that there is a concept of equality. First of all, the fees are being paid to the fund managers, who are unable to give those discounts because they are sticking to the principle of equality. That is, to treat all investors equally.
- Will the maturity date of a fund affect my GV application?
- Answered by João Cunha Vaz from EDGE International Lawyers
It might or might not affect: I think that’s something to be seen immediately while looking at the funds to invest in. The key point here is that we need to factor in the timeline; it should satisfy the initial application period, and then, of course, the renewals until we qualify for citizenship. When we go into an investment, we should make sure that the fund will be active for a minimum of six years from the investment period onwards. That should cover at least the second renewal of the passvisa. This allows you to get a five-year residency that in turn allows permanent residency or citizenship, which is what 85 percent of our passvisa clients seek at the end of the day.
- Are the funds protected/guaranteed by the Portuguese Government?
- Answered by João Cunha Vaz from EDGE International Lawyers
No. The funds are managed at their own risk. One of the characteristics of such funds is that there’s no specific protection provided by the government in terms of the return on investment or recovering the investment made. In this sense, I strongly advise taking the diversification route because it’s the best way a person can mitigate such exposure. You should make sure that you invest in funds that fit your risk criteria as an investor.
- What are the common challenges in the KYC process? Is there any chance of refusal?
- Answered by João Cunha Vaz from EDGE International Lawyers
Theoretically speaking, of course, a person could be refused. From a practical point of view, I don’t recall such a process, to be honest, because even in circumstances where the documents provided are not sufficient immediately, the managing entity either asks additional questions or places a call with the client to understand specific details precisely. So, the answer is yes, the possibility exists, but based on experience, I can say that it’s very unlikely.
- How are we going to be able to track the fund’s performance?
- Answered by Duarte Calheiros e Menezes from BlueCrow
Very simple. At BlueCrow Growth Fund, we have two yearly reports: one published in March and the other in September. The first is based on the appraisals of the assets in December and January, and the latter is on the appraisals of the assets made in June and July. In addition to these two documents, the BlueCrow website allows all clients to access all the documents regarding funds and reports on the counts. Furthermore, every year in April, we have a meeting of participants where we look at the fund investments and strategies and deliver the accounts of the funds.
- How do the funds typically liquidate the assets? Asset by asset or as the whole portfolio?
- Answered by Jorge Santos from MedCapital Fund
Fund managers have great flexibility on this subject. In our particular case for the healthcare fund for MedCapital, strategically, our goal is to liquidate the entire portfolio in one transaction. This way, we can increase the selling price in order to enhance the return to the investors. Still, it’s something that we’re flexible on. If we have a specific asset that has a specific buyer, we can sell it. For us, selling everything at once is the way to capture more value.
- Are there any examples of denied passvisa applications after completing the 5-year investment period? I understand that the process can sometimes be quite bureaucratic and time-consuming.
- Answered by João Cunha Vaz from EDGE International Lawyers
From a legal perspective, ownership/holding of the investment needs to take place at the outset of the residency acquisition, as well as on the renewals of the passvisa, which happen biennially.
To this date, we haven’t verified any passvisa/Residencies not being renewed on this fund option. As mentioned earlier, this would only happen if the applicant no longer holds the investment/participation units or any other eligible investments at the time of a renewal of the residency.
- (Regarding the MedCapital Fund) Is the goal 20% return per year or 20% in 6 years? Also, if the funds are sold at a higher return, is that shared with all investors–i.e., No cap on potential profit?
- Answered by Jorge Santos from MedCapital Fund
MedCapital’s goal is a 20% yearly return, which roughly translates into multiple over-invested capitals of 2.5 times. This target is a net return, i.e., it already takes the Fund’s fees into account. Considering this is a pure private equity fund, if the final return is above or below the goal, it will be shared with all investors in the same manner. There aren’t any caps or floors in the return.
- If the fund distributes capital before the completion of 5 years following the start of the residency, what happens to those funds?
- Answered by Jorge Santos from MedCapital Fund
In the case of MedCapital, the distribution of capital back to investors will happen when the fund closes after the sale of the portfolio, which is expected to happen in 2028/2029 but can go up to 2030. Along the way, any distribution to investors will be done in the form of dividends, which does not affect the passvisa process.
About Get passvisa
Get passvisa helps investors and their families become global citizens by investing in residency and citizenship programs. They assist their clients in finding the best solution that meets their specific needs, whether it is a real estate investment, a fund subscription, or a donation. They’ve given professional advice to over 41,000 prospective investors since 2014.